SNB Keeping Eye on Denmark to Stem Capital Flooding Switzerland
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Swiss National Bank President Thomas Jordan has good reason to keep his eyes on Denmark as Switzerland looks at tougher tools to weaken the franc.
With both nations seen as havens, central bankers in Zurich and Copenhagen are struggling to keep their currencies from appreciating. While the SNB was forced to step up euro purchases to keep a lid on the franc, Denmark’s Nationalbanken on July 5 took the fight against investors to a new level by cutting the interest rate it offers on certificates of deposits below zero.